NARESH KUMAR, PROP. RAGHAV ENTERPRISES 3527, SECTOR 32-A, CHANDIGARH ROAD, LUDHIANA, PUNJAB, 141003,PUNJAB vs. ITO, WARD-1(5), LUDHIANA, PUNJAB

Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 24-06-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 28-12-2019. The sole grievance of the assessee is confirmation of addition of cash deposit for Rs.193.80 Lacs. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. The assessee is stated to be engaged in trading of iron and steel products. 2. During assessment proceedings, it transpired that the assessee deposited cash during demonetization period in its bank accounts. The amount of Rs.58.75 Lacs was stated to be received as cash gift from one Shri Mukesh Kumar. The assessee failed to substantiate the same and also failed to prove his relation with that person. After demonetization, the assessee gifted certain amount through cheques to the same person, The Ld. AO added the gifts so received by the assessee as unexplained cash credit u/s 68. The assessee was shown to have recovered sundry debtors for Rs.135.05 Lacs but the assessee failed to file confirmation of these debtors. Accordingly, the amount of Rs.135.05 Lacs was likewise added u/s 68. The Ld. CIT(A) confirmed the assessment against which the assessee is in further appeal before us. 3. Upon perusal of assessee’s paper-book as placed on record, it appears that the assessee has furnished various replies on the impugned issues. The assessee also placed on record assessment order of Shri Mukesh Kumar. The assessee also furnished ledger extracts, summary of cash in hand, copy of statement of the assessee in the books of Shri Mukesh Kumar, relevant extract of cash book of M/s Raghav Alloys (prop. concern of Shri Mukesh Kumar) and various other documents substantiating the impugned deposits which are stated to be sourced out of cash gifts as well as sundry debtors’ realization. However, no concrete finding has been rendered by Ld.